I have a bit of personal history here — and it has some bearing on broader economic policy issues right now. Back in 1998, in the midst of the Asian financial crisis, I came out in favor of temporary capital controls; a bit about that here. At the time it was regarded as a horribly unorthodox and irresponsible suggestion — and I had a long, very unpleasant phone conversation with a Senior Administration Official who berated me for my anti-market ideas.So remember boys and NonPerkin:
Today, that wild and crazy idea is so orthodox it’s part of standard IMF policy.
There are obvious parallels with the current debate over bank nationalization.
[ cf Capital control memories ]
Advocate Capital Controls!
And the Terrorists WIN!